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Mark Bosly
UK Chief Air Services Negotiator
mark.bosly@dft.gov.uk
What kind of reassurance is needed to encourage market access liberalisation?
Fourth ICAO Air Transport Symposium (IATS/4)
Paradise City, Incheon, Republic of Korea
9th May, 2019
Why reassurances?
• Air carriers all over the world enjoy very different circumstances.
• Most carriers have a unique competitive advantage reflecting those circumstances.
• How can we ensure that carriers have a fair and equal opportunity to compete despite their different circumstances?
• Reassurance on this point is a key factor in determining whether to open-up market access.
2
A fair and equal opportunity to compete
No party should allow its carriers to:
• abuse market power in a way which is likely to severely weaken a competitor or exclude a competitor from a route, or
• enter into arrangements with any other carriers which could prevent, restrict or distort competition
3
State Ownership
• State ownership of a carrier should not be a problem per se. However,
• public subsidy or support should not provide a carrier with an unfair competitive advantage
4
State intervention to maintain key services
• In certain territories, or for certain routes, market forces alone might not be enough to deliver connectivity.
• Sometimes, under controlled/prescribed circumstances, State intervention may be necessary.
5
Commercial freedom and non-discrimination
• Carriers should be free to determine such matters as the frequency and capacity of the services they provide, and their tariffs.
• Carriers should be treated equally, regardless of nationality.
6
More reassurances, for example….
Transparency is necessary to demonstrate that the provisions of an agreement are being complied with
Carriers should be free to remit locally-earned funds without restrictions
7
Non-compliance
• Carriers should be properly regulated and comply with internationally agreed standards.
• Being held to account against relatively lenient standards (or not being held to account effectively) could give an unfair competitive advantage.
8
Dispute resolution
• Non-compliance with the terms of agreements can undermine the fair and equal opportunity to compete.
• Consequently, agreements should include effective dispute resolution mechanisms.
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